Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of the revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, total asset turnover ratio, and the total asset turnover ratio. Consider the following case: Adams Furniture has a quick ratio of 2.00x, $27,450 in cash, $15,250 in accounts receivable, some inventory, total current assets of $61,000, and total current liabilities of $21,350. The company reported annual sales of $200,000 in the most recent annual report. Over the past year, how often did Adams Furniture sell and replace its inventory? 2.86 x 8.01x 10.93 x 12.02 x The inventory turnover ratio across companies in the furniture industry is 12.02x. Based on this information, which of the following statements is true for Adams Furniture? Adams Furniture is holding more inventory per dollar of sales compared to the industry average. Adams Furniture is holding less inventory per dollar of sales compared to the industry average